Limited partners remain committed to private equity in Africa despite a global market which has seen many investors take refuge in more developed markets in the US and Europe, research from professional services firm EY suggests.

Fund of funds have become one of the most important LP groups in private equity funds. According to The 2007 Fund of Funds Review approximately 38 per cent of worldwide private equity assets are controlled by fund of funds. Smaller institutions having assets under management below $10bn are the most important customers of these fund of funds, writes Holger Seidel of BPE Fund Investors.

Funds of funds are mushrooming in Asian private equity, says APER. Excitement stirred in the Asian private equity fund management industry when Asia Alternatives Management LLC announced the final closing of its maiden Asian fund of funds. Asia Alternatives Capital Partners LP greeted the industry with a final size at US$515m and took the crown as the largest Asia-focused fund of funds.

The launch of two new Asian funds of funds underscores a groundswell of global institutional interest in Asian private equity, says the APER. They argue the time appears to be ripe for establishing Asian private equity fund of funds.